6 Signs You Shouldn’t Outsource Fulfilment (Yet)

While we’d be the first people to champion the benefits of outsourced fulfilment, we’re also transparent about the fact that it’s not for everyone.

Deciding to outsource fulfilment to a third party isn’t a light one. It’s a big investment. It involves placing significant trust in another party to do right by your customers. It requires a fair bit of work at the outset. 

So today, we’re going to do something a little different. We’re going to explore a few signs that indicate that outsourcing fulfilment might not be the best solution for your business right now. 

6 Signs You Should Wait To Outsource Fulfilment 

Low Or Inconsistent Order Volume

We speak to a lot of incredible eCommerce brands of all shapes and sizes. As a general rule, we advise smaller brands not to outsource fulfilment until they’re consistently shipping at least 300 orders per month. 

The simple reason for this is that smaller brands won’t usually feel the cost-benefit of outsourcing. Most 3PLs charge based on volume and throughput, so if you’re not shipping 300+ orders consistently, you may find that costs are higher than expected. 

If you aren’t hitting those higher sales numbers just yet, chances are you’ll be able to get by with a smaller, in-house operation. It also gives you the flexibility you need to maintain a close oversight and make adjustments quickly, which is imperative when building a strong foundation. 

You Want To Retain Full Control 

We get it — it’s difficult to relinquish control of something that you’ve invested time, money, and your soul into. You’re the one who understands the needs of your customers best, and the fulfilment process has a huge impact on the customer experience.

We try to be flexible with brands who want to have more control over their fulfilment operation. That’s largely done via our fulfilment platform, ControlPort™, which gives brands the ability to view their operation in full and even communicate with our teams.

That said, it’s inevitable that you will need to place a lot of trust in the hands of your fulfilment partner. You’ll need to place trust in their processes and their people and have confidence that they also want what’s best for your customers. 

If all of that sounds like too much right now, outsourcing probably isn’t for you just yet.

You’ve Not Run Out Of Physical Space

If you’re comfortable in your environment and don’t feel as though units, packaging materials, and other fulfilment-related peripherals are getting the best of you, chances are your operation is still small enough to manage in-house.

If your home has been taken over by cardboard boxes or your rented space looks like the emptied contents of a car boot sale, you may feel like outsourcing fulfilment is the best option to reclaim your space. 

And while the above might indicate it’s time to outsource, that’s not always the case. Sometimes it’s just down to organisation, while at other times it might be because you’ve ordered too much stock.

Things Aren’t Perfect, But They’re working

Everything in life is a balancing act. If you’re still doing things in-house, you’re probably aware that a lot of day-to-day tasks and processes probably aren’t as efficient as they could be. Perhaps you’re recording everything manually on a spreadsheet, or printing label after label. You probably know it’s not the best way of doing things, and you’d rather give all the hassle to someone else. 

But if things are manageable, your customers aren’t complaining and you’re not pulling your hair out, chances are that keeping things in-house is probably the best option for now. 

Those inefficiencies would become a real problem if sales started flooding in, and that’s when it’s time to think about outsourcing — when it’s impossible to keep up without going mad. 

You’re Not Proactively Driving Growth

It’s perfectly okay to run an eCom brand as a side hustle or hobby. Not every business owner needs to shoot for the moon. If you’re running your business on the side and have no real plans to drive growth, then you’re best off keeping fulfilment in-house. 

One of the main reasons people choose to outsource is to get the time and headspace back to pursue growth activities, whether that’s marketing, networking, product development, or nurturing their team. 

If you’re not overly focused on growth, keep things simple — keep things in-house. 

You’re Struggling Financially

This one is a given, but we thought it best to mention it. You shouldn’t consider outsourcing fulfilment if you’re amid financial instability or your business is facing issues with cash flow.

Despite outsourced fulfilment being incredibly cost-effective in the long run, there is still the initial investment to think about. You’ll have the cost of shipping your stock to the fulfilment centre, as well as a set-up fee at the outset. There are also regular invoices to pay going forward. 

Only consider working with a 3PL if you’re financially able to do so, as you could find yourself in bigger trouble if you’re unable to meet the contractual obligations to your provider

Full Transparency

At J&J, we want what’s best for your business. And if that means being honest upfront and advising that now’s not the best time for a partnership, then so be it. 

If after reading this article you think exploring outsourced fulfilment is the right next step for your business, then we’d love to speak with you. With our international network of fulfilment centres, we’re well equipped to take growing brands to the next level.

To find out more, give us a call on +44 (0)1604 968 820 or fill out our online form, and we’ll be in touch.

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